Why start-ups must invest in their POSH compliance

Oftentimes, the question asked is “do start-ups need to invest in POSH compliance?” While the simple answer to that is “yes”, there are a few things that start-ups can keep in mind when making a decision about prioritizing POSH compliance as an activity-

• POSH compliance is a legal mandate under the Prevention of Sexual Harassment (POSH) Act.
• Non-compliance can result in legal ramifications.
• POSH compliance is important to build a culture of safety within your organization.

Do start-ups need to invest in POSH compliance? The simple answer is- YES! ✅

POSH compliance is not only mandated by law but is also important to create a culture of safety in your organization. 🤝 pic.twitter.com/15VoaREIpz

— Ungender (@UngenderTalks) September 21, 2021

When we talk about creating a culture of safety and POSH compliance, there’s a myth that it is only applicable to larger organizations with a substantial number of employees. In fact, many organizations are unaware that not only is POSH compliance necessary for them, it is mandatory under the POSH Act.

The POSH Act expressly lays down that every organization that has more than 10 employees, working with it in any capacity, falls under the ambit of the Act. This means that if you have 10 or more employees who either work full time, part-time, on contractual basis, as interns, volunteers or third party vendors, the POSH Act is applicable to your organization. Non-compliance of the POSH Act can result in a fine up to INR 50,000 per instance of non-compliance and can also lead to cancellation of business licenses.

To think that incidents of sexual harassment are exclusive to larger organizations is one of the most common mistakes start-ups make when building their company’s culture. A single incident of sexual harassment, if left unaddressed, can have a grave effect on the team’s morale and the reputation of the organization. As a start-up, you can build the culture of your team from the ground up.

One of the best ways to do that is by ensuring the safety and security of your team members. If you invest in creating a DNA that values the well-being of your team, your team members are more likely to value their relationship with your organization.

How to begin your journey of POSH compliance?

To become POSH compliant, there are certain steps that the employer must take as mandated by the Act.

• • First of these steps would be to implement a zero-tolerance POSH policy within the organization that lays down the rights and duties of the employees as well as the employer.
  • Having a POSH policy in place would ensure that the authorities know you are implementing the POSH Act within your organization as well as make your team members aware of the steps you are taking to prevent incidents of sexual harassment. The POSH policy must also contain details of the redressal mechanism in place and how employees can access it if they need to.
  • Along with the POSH policy, it is mandatory for the organization to have an Internal Complaints Committee (IC) in place and appoint the members of the committee as per the guidelines laid down in the Act. A well-trained IC can handle POSH complaints effectively as well as complete the investigation in a legal and time-bound manner.
  • The IC is also responsible for filing the Annual Compliance Report with the authorities to ensure that POSH compliance of the organization is absolute and complete.
  • Finally, the organization is also responsible to conduct awareness activities and create awareness about POSH law within its team members. SaaS platforms like Conduct can help lean teams fulfill all their POSH mandates in an efficient and cost-effective manner. Once all the employees are onboarded onto the platform, Conduct takes care of your POSH compliance from start to finish.

Conclusion

Another misconception about POSH compliance is that start-ups do not need to be POSH compliant as instances of sexual harassment are unlikely to happen in smaller organizations. Sexual harassment is a threat for organizations universally and can manifest in any team, big or small.

Every organization needs to take preventative steps to ensure incidents of sexual harassment are avoided. However, if an incident does happen, the organization must have a robust redressal mechanism to address the complaint. Without proper compliance in place, the complaint cannot be addressed in a legally compliant manner. This leaves organizations vulnerable to legal repercussions and loss of reputation. Aggrieved employees may approach the court or NCW and register a complaint of non-compliance by the employer, leading to legal ramifications for the same.

Hence, POSH compliance should be a priority for every organization, including start-ups, to make sure they remain legally compliant and create an “Employee First” culture of safety.